Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8817 

develop trading rules. Telephone conversation 

between Angelo Evangelou, Assistant General 

Counsel, CBOE and David Michehl, Special 

Counsel, Commission, Division of Market 

Regulation, on February 16, 2007. 

6 15 U.S.C. 78f(b)(5). 

7 In approving this proposed rule change the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(5). 5See Form 19b–4 dated February 20, 2007 

(‘‘Amendment No. 1’’). 6The Exchange’s Brokerplex system currently can 

be used by CHX institutional brokers to receive and 

enter orders, manage their orders, route orders to 

the Exchange’s Matching System and other 

destinations for execution and report executed 

trades. 

7A ‘‘SOLD’’ indicator is used, when reporting 

trades in Tape A and B securities, to identify trades 

that are being reported late (i.e., after some delay 

from the time of execution) and out of sequence. 

The Consolidated Tape Association Plan (the ‘‘CTA 

Plan’’), which governs trade reporting in Tape A 

and B securities, provides that a market should 

‘‘designate as ‘late’ any last sale price not collected 

and reported’’ within 90 seconds after the execution 

occurs. 

8The CTA Plan and specifications currently 

provide that the indicator must be placed on trades 

reported more than 90 seconds after they are 

executed. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

The Commission also finds that the 

Exchange’s proposal relating to the 

Permit Program is consistent with 

Section 6(b)(5) of the Act,6 which 

requires that the rules of the exchange 

be designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest; and not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange has imposed various 

requirements and limitations in 

connection with the issuance of CBSX 

Permits. In this regard, the Commission 

notes that although the number of 

Permits to be issued is limited to a 

maximum of 100 Permits, the Exchange 

will allocate Permits by lot if demand 

for them exceeds 100 Permits.7

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–CBOE–2006–

107) is hereby approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3373 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55319; File No. SR–CHX–

2007–01] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

the Use of a ‘‘SOLD’’ Indicator 

February 20, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

30, 2007, the Chicago Stock Exchange, 

Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by the 

Exchange. The CHX has filed this 

proposal pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(5) 

thereunder,4 which renders it effective 

upon filing with the Commission. On 

February 20, 2007, the Exchange filed 

Amendment No. 1 to the proposed rule 

change.5 The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

rules to specify that a ‘‘SOLD’’ indicator 

must only be affixed to a trade to the 

extent required by applicable 

intermarket trade reporting plans. 

The text of the proposed rule change 

is available on the CHX’s Web site at 

http://www.chx.com, the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange’s institutional brokers 

may execute transactions in the 

Exchange’s Matching System or may 

report transactions through the 

Exchange’s Brokerplex system.6 Under 

Article 17, Rule 3(e) of the Exchange’s 

rules, if institutional brokers use the 

Brokerplex system’s trade reporting 

functionality, these brokers are required 

to use their best efforts to report 

transactions within 10 seconds after 

execution. A ‘‘SOLD’’ indicator must be 

affixed to the trade if this 10-second 

window is exceeded.7

The CHX had established this 10- 

second time frame for affixing the 

‘‘SOLD’’ indicator as part of its new 

trading model rules in the belief that the 

CTA Plan would be amended to contain 

a similar provision. At this point, 

however, the CTA Plan has not been 

amended to reflect this shorter time 

frame.8

This proposal would change the 

Exchange’s rules to specify that the 

‘‘SOLD’’ indicator must only be affixed 

to a trade to the extent that the indicator 

is required by an intermarket trade 

reporting plan, such as the CTA Plan. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act 9

in general and furthers the objectives of 

Section 6(b)(5) 10 in particular, in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of, a free and 

open market and a national market 

system, and in general, to protect 

investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 


cprice-sewell on PROD1PC62 with NOTICES
8818 Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(5). 

13For the purposes of calculating the 60-day 

abrogation period, the Commission considers the 

proposed rule change to have been filed on 

February 20, 2007, when Amendment No. 1 was 

filed. 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

5See, e.g., Securities Exchange Act Release No. 

55210 (January 31, 2007), 72 FR 5777 (February 7, 

2007) (SR–NYSE–2007–08). Nasdaq notes that its 

proposed rule change is identical to the New York 

Stock Exchange LLC’s rule change. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) have the 

effect of limiting the access to or 

availability of an existing order entry or 

trading system of the Exchange, the 

foregoing rule change has become 

effective immediately pursuant to 

Section 19(b)(3)(A)(iii) of the Act 11 and 

Rule 19b–4(f)(5) 12 thereunder. At any 

time within 60 days of the filing of such 

proposed rule change, the Commission 

may summarily abrogate such rule 

change if it appears to the Commission 

that such action is necessary or 

appropriate in the public interest, for 

the protection of investors, or otherwise 

in the furtherance of the purposes of the 

Act.13

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CHX–2007–01 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CHX–2007–01. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal offices of CHX. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–CHX–2007–01 and should 

be submitted on or before March 20, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3290 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55323; File No. SR–

NASDAQ–2007–009] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding 

Intermarket Sweep Orders 

February 21, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

16, 2007, the NASDAQ Stock Market 

LLC (‘‘Nasdaq’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II, 

below, which Items have been 

substantially prepared by Nasdaq. 

Nasdaq has designated the proposed 

rule change as constituting a ‘‘noncontroversial’’ rule change under 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

Nasdaq is proposing to modify Rule 

4759 to permit Nasdaq members to 

submit Intermarket Sweep Orders 

(‘‘ISOs’’) to Nasdaq if they have 

simultaneously sent an ISO (or 

comparable order) for the full displayed 

size of the top of the book of every other 

ITS participant displaying a betterpriced quotation. The text of the 

proposed rule change is available at 

Nasdaq, the Commission’s Public 

Reference Room, and http:// 

nasdaq.complinet.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. Nasdaq has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

As part of its rollout of its new Single 

Book execution system, Nasdaq is 

preparing to launch additional features 

of its compliance with Regulation NMS 

(‘‘Reg. NMS’’). Specifically, Nasdaq is 

preparing to accept ISOs. Like other 

markets, Nasdaq is proposing to accept 

ISOs prior to the Trading Phase Date, 

currently March 5, 2007, in order to 

ensure a smooth transition to the Single 

Book System functionality for 

compliance with Reg. NMS. 

Like other markets that have received 

approval to accept ISOs prior to the 

Trading Phase Date,5 Nasdaq seeks to 


cprice-sewell on PROD1PC62 with NOTICES